Why cold calling "Motivated Sellers"
can be frustrating and how you can realistically call 100 "Motivated Sellers" in a matter of minutes for
less than $4 bucks!
If you're sick of cold calling, then here is an inexpensive alternative!
From the Desk of: J.Lamar Ferren, Sr.
Date: Sunday, August 17th, 2008
Hello Fellow Investors,
Lamar here and I have to ask...Do you get frustrated when cold-calling Motivated sellers?
I know I do. I literally wasted 28 minutes of my life this past Friday (August 15th, 2008). But I sacrificed that 28 minutes to once again prove a point...
Here's what happened...
This past friday I was on the phone with a fellow investor who is a member of my Investor List. I was helping them out with some cold calls as we were looking to put some nice deals together. Now, let me make it very clear that I have nothing against cold calling and I enjoy it.
However, I do know most investors HATE cold calling and I know exactly why....
Back to the story!
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So, this investor and I did a 3 way call to a "Motivated Seller" named Ron.
Ron had a home in Texas that was said to be worth $105,000 and he was looking to get exactly that.
As we began the call, I introduced myself:
Lamar: Hi, My name is Lamar... Can I speak to Ron Please? (My fellow investor is listening silently in the background...)
Ron: Hey Lamar, how's it going....
Lamar: I'm doing Ok....Is this a good time to call? (Asking this question first will show that you respect their time).
Ron: Oh yeah sure, It's fine...
Lamar: Ok great! So, Can you tell me a little bit about the home? (This is where I just shut up and listen...)
Ron: Sure, it's a gorgeous 3 Bedroom 2 Bathroom home, downstairs you'l find a lovely living room and.... (As Ron goes on about his home, I'm listening to every word, so I know what to ask next. I don't use a script, nor do I recommend it. If you have to use one, then use it as a guide only)
Lamar: Sounds nice! Are there any Repairs?
Ron: None
Lamar: How much do you think it's worth? Or What are other homes selling for in your area that are similar to yours?
Ron: I think it's worth about $105,000
Lamar: Ok, and what are you asking for it?
Ron: I'm asking somewhere around that...(1st clue of Non-Motivation...But let's keep going)
3-5 minutes into the call...
Lamar: Ahh ok, so you want full retail value?
Ron: Absolutely, I'm not pressed to sell it fast. I'm not in any type of desperate situation that would require me to lower the price... (This is normally the first sign of an Unmotivated Seller and is usually when I begin to wrap the call, but I kept going because my fellow investor was still listening and now I felt I had to prove a point about a mistake that many new investors make at this part in the call)
Lamar: Oh ok, so...You're looking to make money on this or you just want to get rid of it?
Ron: Oh absolutely! I can keep this thing on the Market for the next 5 years if I wanted to. I own it Free & Clear by the way... (At this point, I'm ready to cut the call, but I couldn't help it...)
5-7 minutes into the call...
Lamar: Got it! Well, I'm an Investor and I have a special program that will help me sell your home in literally 2 weeks. I'm not looking for a huge discount or anything like that, but I am an Investor and I need to make some money in this deal. I'm also looking for the most efficient way to help you. By giving you full value, that wouldn't be possible. The highest I can pay is....$85,000 (That was an offer of 85% LTV. Most motivated sellers would jump on this right away. How many Investors do you know that can pay that much?)
Ron: No that won't work.... Maybe $95,000 (Just dropped him $10K...) Well....Again, I'm not in any desperate situation, so thats the lowest I'm willing to go. I'm an investor too and it wouldn't make sense to except anything less than what it's worth.... Blah Blah Blah
***************************************************
In a hurry? Click here to find out exactly how you can call
100 Motivated Sellers in a mater of minutes for less
than $4.00 bucks
***************************************************
Ok, so I kept going on an on, telling him that I could definitely help him out and how I had the best strategy alive and every time he pushed me away, I kept coming at him at this angle and that angle....
After 28 rough minutes of being rejected over and over again... We finally ended the call!
The investor on the call with me was frustrated... I just laughed it off and said..."Ok, I did that on purpose and I want to let you know why..."
I knew 5 minutes into the call that he was not a motivated seller. I kept pressing on to prove a point that talking to unmotivated sellers can be a very frustrating process if you don't identify it early on. By listening for the seller's motivation you can determine early on if you should proceed with the call or not. I normally never make an offer on the first call, unless I have to.
On top of that, if the seller is NOT in a desperate situation to move, then it is a key indicator. Now, you don't have to be desperate to want to sell, but you do have to be motivated. Ron acted as if he didn't have a care in the world whether he sold his house or not. That is not a Problem that I can solve. When I'm contacting motivated sellers, I'm looking for problems. Problems that I know I can provide solutions for. Problems like Job Transfers, Divorces, double mortgages, default payments, no equity, death in the family, etc. All these problems can be solved through Creative Real Estate Investing...
Also, not many Motivated sellers are looking to make loads of money on a property. (At least the ones I speak to.) If there is room in the deal for them to make money, then I have no problem with the seller making money. But if they're in a situation where it won't make sense... then I'm looking to get what I can out of the deal and quickly solve their problem. Usually a "Motivated" Seller will just want to get rid of the property.
The bottom line was that Ron was not a Motivated Seller.
You can save a lot of time and heartache by being able to identifying the clues early on.
It's funny because you know you can truly help these people and you know you have the solution to help them sell their home fast, but the problem is how do you get it though their head... If they don't want your help, then move onto the next. There are literally millions of homes for sell Nationwide. Someone out there needs your help! Somone out there needs you to solve their problem!
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